Communication from the Board of Directors for the 33 Public and 33 Operating Companies in the Sharemax Properties Portfolio

STATEMENT BY THE BOARD OF DIRECTORS OF THE 33 PUBLIC AND 33 OPERATING COMPANIES IN THE SHAREMAX PROPERTIES PORTFOLIO

23 November 2010

The Board of Directors of the 33 public and 33 operating companies in the Sharemax properties portfolio wishes to update all investors, financial advisors and other interested and affected parties as to the focus of its activities since taking on the fiduciary duties of each of the individual investment companies. Each investment is receiving individual attention to determine the financial situation, the potential losses to investors if applicable, and possible solutions. The Board is now in a better position to evaluate each investment and will report on its progress as a matter of urgency.

Zambezi Retail Park

The arbitration process is progressing well and both Capicol and the Zambezi Retail Park’s legal teams have exchanged pleadings. The date on which the arbitrator will make his decision is not yet known. The arbitration will commence on 23 November 2010. It is important to note that The Villa investors will probably not be directly affected by the outcome of the arbitration as Zambezi and The Villa developments are held in different legal entities by the developer.

The Board cautions investors that they may need to accept a lower income than previously envisaged.

The Villa

The Villa is the first project of its kind to receive a Green Star SA – Retail Centre Design Version 1 Rating from the Green Building Council of South Africa.

Meetings are being held with possible financiers and builders with the primary aim of getting the building completed. However, the Board cautions investors not to be overly optimistic about the current market value of this, or other properties, and should be aware of the potential impact of this on their capital investment. Regular income from their investment in The Villa is unlikely to resume.

Income Plans

Various offers in various forms have been received for the properties in the income plans. Each offer is being scrutinised by the Board. Any offer that is deemed to offer investors an acceptable solution will be put to investors for their acceptance. Of priority is the plan to address the alleged breach of the Banks Act.

In addition, each property is being evaluated by the Board and is being categorised according to its income potential. Once a conclusive position has been reached on each syndicated property, more direct communication will be instituted with the investors in the relevant properties.

An income schedule for each property that is receiving income is being published on the websitehttp://www.goob.co.za/mediaupdate/index.html .

Growth Plans

These are long term investments and are developmental in nature. All of these investments are being revisited and evaluated against the original development plans.

The Board is of the opinion that the most pressing issue regarding these plans is to comply with the Banks Act. Detailed communication will follow as soon as the Board has reached a conclusive position on each.

Sharemax Investments (Pty) Ltd

The Board of Directors wishes to reiterate again that it is operating completely independently from Sharemax Investments (Pty) Ltd, which was the marketing and promotions vehicle of the different syndicated properties.

The Board of Directors is focused on finding solutions that are in the best interests of the underlying companies and will update investors as progress is made in this regard. This includes offers and approaches it receives from third parties for any of the companies previously promoted by Sharemax. At this stage it is important to note that the approach by Realcor Holdings in September of this year was not a formal submission of an offer, and there is thus no offer for the Board to consider.